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2. a. Congress has changed tax rates many times, and one example of major change occurred in the summer of 2001, during the Bush (43)

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2. a. Congress has changed tax rates many times, and one example of major change occurred in the summer of 2001, during the Bush (43) administration. The legislation was officially titled The Economic Growth and Tax Relief Reconciliation Act of 2001. The tables below contrast the tax rates before this legislation in 2000) and later, in 2009. Calculate the income tax for both 2000 and 2009 using a taxable income of $400,000 and married filing jointly status. Also calculate the overall tax percentage. Tax Computation Tax Computation 2000 Tax Rate 15% 28% 31% 36% 39.6% Married Filing Jointly up to 43,850 up to 105,950 up to 161.450 up to 288,350 over 288,350 2009 Tax Rate 10% 15% 25% 28% 33% 35% Married Filing Jointly up to 16,700 up to 67.900 up to 137,050 up to 208,850 up to 372,950 over 372,950 Total Income Tax: % of Taxable Income: Total Income Tax: % of Taxable Income

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